Figures released by the Society of Motor Manufacturers & Traders reveal that UK car sales increased to 464,824 in March (just 2,130 units short of the record March 2004 total). Sales were up by 17.7% compared with March 2013, while year-to-date registrations rose by 13.7% to 688,122.

SMMT chief executive Mike Hawes said: “Given the past six years of subdued economic performance across the UK, there is still a substantial margin of pent-up demand that is contributing to a strong market for new and used cars.” He expects the market to continue to perform positively for the rest of the year, albeit at a more modest rate.

Howard Archer, the chief UK economist at IHS Global Insight, said: “The motor industry will be hoping that recent robust UK economic activity is sustained and extended, and that this underpins consumer and business confidence — and their willingness to ‘splash out’ on new cars.”